Thursday, December 23, 2010

Child Only Health Insurance - The Saga Continues

In response to Obamacrap and idiotic rulings from the Dept. of HHS, health insurance companies in all states ceased to offer "child only" health insurance plans in every state, including Georgia. Apparently the Socialist state of California has a better idea.


a new California law forced the insurers to change course. Beginning Jan. 1, it will prohibit those that abandon child-only coverage from selling new policies in the broader individual insurance market for five years

In Gestapo fashion, the state knows what is best for everyone.

They must be wearing rose colored glasses out there, the same ones issued to politicians in Washington, because they believe they can make things better for everyone by threatening to kneecap anyone who refuses to comply.

In the words of Michael Corleone, "It's not personal, it's just business".

So carriers that wish to continue writing individual health insurance business, at least until the government completely takes over that market, must comply with the wishes of the state.

Many things are interesting, and frightening at the same time, but notably the ability of government to dictate what companies must sell, the prices at which they are allowed to sell, and if they refuse to comply they are banished.

At what point was the American flag removed and replaced with a hammer and sickle?

"It's good that the insurers are back in the market, even if they had to be brought back kicking and screaming," said Anthony Wright, executive director of the consumer advocacy group Health Access California. "It will make a big difference for thousands of families."

Perhaps Anthony was sniffing glue right before making this remark, or else he is just stupid without any help from halucinogens.

It appears child only plans will return, but at what price?

Since the state in their infinite wisdom have placed a cap on the rate up for these policies the logical move for carriers is to file for new standard rates. New rates could apply to children only and those rates could easily be double, triple or more current rates.

In Georgia one health insurance company's rates for children under the age of 1 are higher than rates for a 40 year old.

Another option for health insurance companies would be to shift the losses from writing child only health insurance to older insureds (over age 18). We already know that many parents who have healthy children will simply forgo buying health insurance on their children while the parents of sick children will flock to this new deal like crows to road kill.

The cost of maintaining these policies will be prohibitively high and losses will have to be made up somewhere. The result will be like squeezing a balloon which will result in higher overall rates for everyone.

So how is this Obamacrap change working for you guys?

Just another stupid government trick.

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